UPS Goes All in for Trump Tax Plan With $12 Billion Dollar Program for America
During his 2016 campaign, then-candidate Donald Trump jokingly warned his supporters that they may eventually grow “tired of winning” once his pro-growth business and tax policies were put in place.
Following the series of incredible announcements regarding investments and employee bonuses from a host of different companies after tax reform was passed into law, we feel compelled to ask: Have you grown tired yet?
According to Breaking 911, the latest such announcement came from the United Parcel Service, better known as UPS, who just revealed a total investment of about $12 billion in their business and employees, and they specifically credited Trump’s tax reform as the basis for it.
That $12 billion will go toward expanding the company’s Smart Logistics Network and provide a significant contribution to their employee pension funds.
Tax reform is a tremendous catalyst. Good economic conditions and strong growth momentum mean investing for the long-term. pic.twitter.com/M1hJs4Rps7
— UPS (@UPS) February 1, 2018
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” stated Chairman and CEO David Abney in a release from the UPS Pressroom. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
“Through our current and future actions,” Abney continued, “we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility.”
Of that $12 billion, roughly $7 billion will go toward the construction and renovation of new and existing facilities and toward the acquisition of new aircraft and ground vehicles, as well as enhancing the information technology platforms that support their network.
On top of that, they will also increase their capital spending above the current level of six to seven percent of annual revenue.
Furthermore, UPS also announced a $5 billion contribution to the three UPS-sponsored pension plans they offer, which equates to about $13,000 per enrollee. That contribution also raised the funding level of the pension plans above 90 percent, which secured retirement benefits for both union and non-union employees alike.
“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” stated Abney. “Our investments will create new jobs, secure existing jobs and expand opportunities for our people. We are committed to remaining a preferred employer by continuing to provide industry-leading compensation and excellent career opportunities.”
The CEO also hinted that there could very well be more good news to come in the future.
“Tax reform is a tremendous catalyst,” Abney added. “We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year.”
According to the Atlanta Business Chronicle, this was perhaps the biggest tax reform-related announcement yet from a Georgia-based company, as several others — such as Home Depot, Aflac and SunTrust Banks, to name a few — had announced that they would be distributing one-time bonuses of around $1,000 and/or increasing their minimum wages.
The announcement from UPS also coincided with the revelation that they intend to purchase 14 brand-new Boeing 747-8F aircraft, the largest the business has ever flown, as well as four additional Boeing 767 aircraft to expand their air fleet.
So, we again must ask … are you tired of winning yet, or do you think you can handle a little bit more? We are, after all, only beginning Trump’s second year in office, so there is likely plenty more to come. We suggest everybody get some rest so they can keep up.
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